[New York Stock Market] Mixed Close Awaiting Nvidia Earnings... Tesla Up 5.6%

NVIDIA to Release Earnings After Market Close on 20th
Tesla Rises on Trump's Consideration of Autonomous Vehicle Regulation Easing
US Approves Ukraine's Missile Use, Oil Prices Up 3%

The three major indices of the U.S. New York stock market closed mixed on the 18th (local time). Following the acceleration of the 'Trump rally' after the presidential election on the 5th, which has now entered a lull, investors' attention is turning to the upcoming earnings report of AI superstar Nvidia, which will be released this week. Tesla surged more than 5% on prospects of eased autonomous vehicle regulations.

On that day in the New York stock market, the blue-chip-focused Dow Jones Industrial Average closed at 43,389.6, down 55.39 points (0.13%) from the previous trading day. The large-cap-focused S&P 500 index rose 23 points (0.39%) to 5,893.62, and the tech-heavy Nasdaq index gained 111.68 points (0.6%) to close at 18,791.81.

By individual stocks, Tesla jumped 5.62%. The stock soared following a Bloomberg report that President-elect Donald Trump is seeking to ease regulations on autonomous vehicles. Nvidia, which is set to announce earnings this week, fell 1.29% amid reports that its latest AI chip, Blackwell, is experiencing server overheating issues. CVS Health rose 5.41% after news of four additional board member appointments. Apple increased by 1.34%, while Netflix and AMD rose 2.8% and 2.99%, respectively.

Last week, the New York stock market declined as the Trump rally cooled down. The Dow Jones Industrial Average fell 1.2%, while the S&P 500 and Nasdaq indices dropped 2.1% and 3.2%, respectively. Federal Reserve Chairman Jerome Powell's indication that he would not rush to cut interest rates also dampened investor sentiment. As a result, the market has lowered expectations for a rate cut next month. According to the Chicago Mercantile Exchange (CME) FedWatch, the federal funds futures market on that day reflected a 58.7% probability that the Fed would cut rates by 0.25 percentage points at the December Federal Open Market Committee (FOMC) meeting, down from 65.3% a week ago and 76.8% a month ago.

Investors are awaiting Nvidia's earnings report, which will be a key catalyst in determining the future direction of the stock market. If Nvidia's earnings and outlook, to be released after market close on the 20th, exceed market expectations, it could provide a turning point for the market rebound. Wall Street is particularly focused on the demand outlook for Nvidia's latest AI chip, Blackwell.

Kim Forrest, Chief Investment Officer (CIO) at Bokeh Capital Partners, said, "The star this week is Nvidia," adding, "If no information comes out before the earnings announcement, the market will wait and watch to see what is happening with Nvidia."

Chris Larkin, Investment Managing Director at Morgan Stanley eTrade, said, "Traders seem to be evaluating the potential impact of the new Trump administration's policies on the economy and the possibility that the Fed may slow the pace of rate cuts," and added, "This week's market focus will shift to earnings, especially Nvidia's earnings, which could influence the market's short-term momentum."

Besides Nvidia, Palo Alto Networks and retailers Walmart, Target, and Ross will also release earnings this week. According to market research firm FactSet, 93% of S&P 500 companies have reported earnings so far. Among these companies, three-quarters exceeded earnings per share (EPS) expectations, and 61% surpassed revenue forecasts.

U.S. Treasury yields remained steady. The 10-year U.S. Treasury yield, a global bond rate benchmark, traded at 4.41%, unchanged from the previous day, while the 2-year Treasury yield, sensitive to monetary policy, fell 1 basis point (1bp = 0.01 percentage points) to 4.28%.

International oil prices rose. The Biden administration's approval allowing Ukraine to use U.S.-supplied missiles to strike Russian mainland heightened tensions between Russia and Ukraine. West Texas Intermediate (WTI) crude oil closed at $69.16 per barrel, up $2.14 (3.2%) from the previous day, and Brent crude, the global oil price benchmark, rose $2.26 (3.2%) to $73.30 per barrel.